Markel, a Virginia-based in Virginia holding company for insurance, reinsurance and global investment operations, said the $919 million deal will help diversify its underwriting and revenue streams.

State National, which is based in Bedford, Texas, will operate as an independent division of Markel.

State National is focused on collateral protection insurance that insures personal automobiles and other vehicles held as collateral for loans made by credit unions. Its Program Services segment provides access to the U.S. property/casualty insurance market in exchange for ceding fees.

According to its website, State National is the largest and longest-standing pure-play U.S. insurance fronting business with approximately $1.4 billion in gross written premium (2016) and more than 60 programs. It employs about 400 people.

“We look forward to adding the premier fronting platform through which insurance products can be offered throughout the U.S. as well as adding a recognized provider of collateral protection insurance to credit unions and regional banks to our product offerings,” Richard R. Whitt, Markel’s co-chief executive officer, stated.